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The evolution of better, faster, cheaper, and slicker crypto assets

‘Bitcoin was new and innovative, but the network was slow…Solana has come in and it’s about that speed and about the price’: Revix founder Sean Sanders.

SIMON BROWN: I’m chatting to Sean Sanders, founder of Revix. Sean, I appreciate the early morning time. Back in May, we were talking about Altcoins, Alt crypto coins. You casually mentioned Solana and I went and did some digging. I didn’t buy any. It’s up I think eightfold since you mentioned it in May. It’s about 80-fold up year to date; [the] total market cap [is] over $50 billion. Having dug around, I went and saw some of the projects running on it. This is the evolution of crypto as blockchain, perhaps more than currency. This is what Solana is offering and hence the enthusiasm for it. Is that a fair analysis? 

Listen: Money market funds and the rise of alt coins

SEAN SANDERS: I think that is, and thanks very much for having me this morning. Just before we started this segment of the podcast, you were talking about supply chains, and if you start thinking about blockchain and the ability to impact areas outside just maybe moving value, I think people get caught up with the idea of what a currency is supposed to do. The name of cryptocurrency is probably a bit of a misnomer. It should probably be a ‘crypto asset’. 

But if you’re looking at solving supply chains, getting involved with the world of DeFi (decentralised finance), you need blockchain infrastructure, blockchain networks that can sort of power this evolution. That’s really where Solana comes in. If you look at what’s happened to Ethereum over the last while, Ethereum’s kind of become a victim of its own success. It’s got so much popularity, so many people are building on top of it that it’s become almost impossible to use. 

Just for reference, we tried to execute a very basic transaction on the Ethereum network yesterday at Revix, and we had to pay over $300 for that transaction. Using Solana would’ve cost us less than two US cents: so $300 [versus] two US cents. And the Solana blockchain is far more scalable than Ethereum. This has led to a lot of application developers, to a whole lot of protocols and platforms moving over from the likes of Ethereum…to Solana. 

Another cryptocurrency, which is actually very similar to Solana is Cardano, which has also been doing really well over the last few months. 

SIMON BROWN: A great point. Ten years ago Bitcoin was new and innovative, but the network was slow. They put a sort of – they called it lightning – infrastructure over it to try and improve that. Solana has come in and it’s about that speed and about the price. In essence, I suppose it’s technology. But as we become aware of (how) we want to use these crypto assets – and I like that distinction – we are moving it forward, and Solana solves it. 

You mentioned Cardano, and I can’t help wondering if we chat in a year or three’s time perhaps there’s yet another one that is better, faster, cheaper, and slicker.

SEAN SANDERS: Completely. This is the entire narrative that we’ve had in Revix. Not to be punting on products or anything, but I’m going to do it here: the idea with our top 10 bundle, which provides exposure to the top 10 cryptocurrencies, is to do exactly that. It’s to say you can’t guess which of these cryptocurrencies are going to be the big success stories of the future. 

You’ve got Chainlink, which is looking to solve a very big problem in the crypto space when you link different blockchains because currently, the Bitcoin blockchain can’t really communicate to let’s say the Ethereum network or Solana. Chainlink is looking essentially to be able to have information transfer between them. Polkadot is doing something very similar. Then you’ve got the likes of Ethereum, Cardano, and Solana that are coming in and doing something very different in terms of blockchain as a service offering.

The market is sort of speaking for itself. Bitcoin dominance, which shows the total value of Bitcoin relative to all the other cryptocurrencies in existence, has gone from 71% at the start of the year to 41% today. And this is just showing that, even though Bitcoin’s up nearly 250% over the last 12 months, you’ve seen so much value created in the alternative cryptocurrencies. 

I like what you mentioned earlier. You said this is the evolution of this technology – and it’s quite important to remember that cryptocurrencies, or we can call them crypto assets, are really technology. They are like programmes. So you’re looking at the Windows 95 at the moment of the crypto world. Fast forward and you start looking at maybe the Windows 10s; that’s really where things get exciting with the likes of Solana, the likes of Cardano.

We recently launched Cardano on our platform. We are actually launching Solana….

These cryptocurrencies are known as ‘version three’ cryptos. So they’re sort of a third generation of cryptocurrencies that are meant to be cheaper to use, more scalable, and just all-around better for the environment as well, which is now another big point of concern in the crypto space.

SIMON BROWN: I like that. It is an evolution in Windows 95. Of course it still means we’ve got to get through Windows 2007, which was a horror one – but we will worry about that when it gets there. 

My fun stat of the day is that an investor put just over $3 million into Solana seed capital three-and-a-half years ago; it’s now worth almost $14.5 billion.

Sean Sanders, founder of Revix, I appreciate the early morning time.

Listen to Wednesday’s full MoneywebNOW podcast here.

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Lots happening.

I hodl some of the larger crypto’s for the long term.

It would be nice to be able to participate in some of these developments but the one major issue is regulation..

What will the regulation say? For capital transaction you might have to hodl 3 years?? These smaller crypto’s (to an extent the big ones too) are just to volatile and with little history difficult to take a stab at what could happen over a 3 year period.

Its critical that SA wake up and regulate if that’s what they want to do. People need to plan and not get the normal SARS threat of jailtime for something you did not even know is a new requirement.

Maybe it’s best to just take money offshore to transact in crypto? For guys like me the yearly allowance is more than enough.

The concern I have is by the time SA regulators wake up the whole thing has developed further and whatever “regulation” they decided on is not applicable anymore.

End of comments.

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